Fundamental overview:
GBP/JPY is expected to trade with bearish bias. It is undermined by the increased investor risk aversion, Japan's exports, and by the weak euro sentiment as the breakdown of Greece-EU talks heightened fears that the debt-laden country would be forced out of the eurozone. But the GBP/JPY losses are tempered by demand from the Japanese importers.
Technical comment:
The daily chart is mixed as the MACD is bullish, but stochastics is falling from overbought levels.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 183.35 and the second target at 184.20. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 181.25. A break of this target would push the pair further downwards, and one may expect the second target at 180.90. The pivot point is at 181.75.
Resistance levels:
183.35
184.20
184.95
Support levels:
181.25
180.90
180.15
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